American Dental to Buy Dental Group

WAKEFIELD, Mass. (AP) -- American Dental Partners Inc., which works as a business partner to dental practices, said Friday it will buy Metropolitan Dental Holdings Inc. for $85 million in cash.

American Dental Partners will also pay an earnout of up to $10 million in 2008 based on Metropolitan Dental's earnings before interest, taxes, depreciation and amortization for the fiscal year ending Dec. 31.

The acquisition will be funded by American Dental's revolving credit facility, which is being expanded to $130 million, and an interim credit facility of up to $100 million.

The deal is expected to close in the fourth quarter of 2007, pending customary closing conditions and regulatory approval.

Minnesota-based Metropolitan Dental, controlled by private equity firm Sentinel Capital Partners, is a multi-specialty dental group with more than 90 dentists, 34 dental facilities in the Minneapolis-St.Paul area, and a dental lab.